Name : Gohar Ghaffar

ID : F2019274004
SECTION : G
Consumer Behavior
Mid Term Exam

Please explain the following with examples in your own words. Do not copy from the book or Internet.

1. Customer Value vs. Customer Retention

Ans : Customer Value :
 It is Defined as the ratio between the customer’s perceived benefits and the resources used to obtain
those benefits.
 Perceived value is relative and subjective.
 Example : Getting a mobile phone with all features at a reasonable price.
Customer Retention :
 It is defined as the objective of providing value and to retain highly satisfied customers.
 Loyal customers are key They buy more products and They are less price sensitive
Example : Brands like BATA shoes will always try to retain their customer by providing them
benefits
2. Purchaser vs. User vs. Influencer
Purchaser : It is the one who buy any product or service.
Example : Purchasing a cold drink from a store
Influencer : An Influencer is the one who had the ability to influence the purchasing power of others
because of his authority, knowledge, position, or relationship with his audience.
Example : A celebrity endorsing a product and asking people to buy it.That product can be anything a
phone or car etc.
3. Loyalist vs. Apostles
Loyalist : A person who is loyal to a brand and every time buys from them
Example : A person who uses dunhill cigarettes to smoke will always stick to it
Apostles : it is a sub-segment of loyalists. The apostles find great satisfaction and loyalty but the
relationship with the product or service is very deep, creating emotional connection. They bring other
people to your business, introduce them to you and introduce them to your other customers.
Example : customers are targeting you by phone, traffic, their blogs, Twitter and Facebook feeds.
4. Hostages vs. Mercenaries
Hostages are the customers who are not satisfied, but continue to repurchase from your company.
They are often attached to the company because of the independence of the market or the cost of high
exchanges.
Example : Buying cheese from a store because of the discounted rate as compare to another store
Mercenaries are satisfied customers, but they switch between products. The price is usually
critical, it wants to trade with the best offers and pursuing fashion trends. They do not feel in
contact with certain products. They are often expensive to gain and difficult to maintain
Example : Buying milk which are at low rate that can be olpers,haleeb or nurpur etc.

5. Quantitative Research vs. Qualitative Research

Quantitative Research :
 Descriptive in nature.
 Enables marketers to “predict” consumer behavior
 Example :  online surveys, paper surveys, mobile surveys 
Qualitative research :
 Consists of depth interviews, focus groups, metaphor analysis, collage research, and projective
techniques.
 Small sample sizes.
 Example :  unstructured interviews which generate qualitative data through the use of open
questions.
6. Focus Group vs. Observation
A focus group is a small-group discussion guided by a trained leader. It is used to learn about
opinions on a designated topic, and to guide future action. 
Examples: A focus group of parents of preschoolers meets to discuss child care needs.
Observation is a market research technique in which highly trained researchers generally
watch how people or consumers behave and interact in the market under natural conditions.
Example : Transportation departments use observation to conduct traffic counts and usage
patterns.
7. Validity vs. Reliability
Validity : If a study has validity it collects the appropriate data for the study.
Example if your scale is off by 5 lbs, it reads your weight every day with an excess of 5lbs.
Reliability : A study has reliability if the same questions, asked of a similar sample, produce the same
findings.
Example : a person weighs themselves during the course of a day they would expect to see a
similar reading. If findings from research are replicated consistently they are reliable.
8. Stratified Sampling vs. Cluster Sampling
Stratified sampling :
 Enhanced Precision
 Reduced errors
 Depends on the researcher
Cluster Sampling :
 Cost reduction
 More errors
 Division naturally formed
9. Convenience Sampling vs. Judgmental Sampling
Convenience sampling attempts to obtain a sample of convenient elements.
Example ; use of student,and memebers of social organization
People on the street interviews
Judgemental sampling is a form of convenience sampling in which population elements are
selected based on judgement of researcher
Example : test markets, expert witnesses used in court
10. Usage Rate vs. Usage Situation
Usage rate : a measure of the quantity of a product consumed by a user in a given period;
users may be subdivided as heavy, moderate and light
Example : hight rate,low rate
Usage situation involves time,objective,location and person
 Example : leisure,gift,home,family members

11. Benefit Segmentation vs. Motivation

Benefit segmentation is dividing your market based upon the perceived value, benefit,
or advantage consumers perceive that they receive from a product or service
Example :economy , value for the money
Motivation is the driving force within individuals that impels them to action.
Example : motivating yourself to get a job or passing an exam or earning any reward

12. Target should be Sizable vs. Accessible

13. Local Marketing vs. Individual Marketing
Local marketing is the marketing in which products are available locally,they are also promoted
locally at the ground level.Its buyers are majority in middle and low class
Example : getting fish from a fish bazaar
Individual marketing : In individual marketing, it is necessary to meet
the demands of each person successfully. Technology has made remarkable
advances and has helped in the promotion of individual marketing.
Example : internet marketing
14. Innate Needs vs. Acquired Needs
Innate Needs that are considered primary needs or motives
Example : getting bread,eggs
Acquired Needs-Learned in response to our culture or environment.
Example : getting jah namaaz or tasbi

15. Generic Goals vs. Specific Goals

Generic goals are general categories of goals that consumers see as a way to fulfill their needs
Example :
Product-specific goals are specifically branded products or services that consumers select as their
goals

16. Rationality vs. Emotional

Rationality implies that consumers select goals based on totally objective criteria such as size,
weight, price, or miles per gallon
Emotional motives imply the selection of goals according to personal or subjective criteria

17. Aggression vs. Regression

18. Emotional Arousal vs. Cognitive Arousal
19. Behaviorist School vs. Cognitive School
20. Ego Needs vs. Self-Actualization